Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Macroeconomics

<p>We maintain our underweight call on Taiwanese equities, even though US-China trade tensions are likely to de-escalate with the Democrats now in control of the House of Representative. We would not be surprised to see an improvement in investor sentiment towards China, spill over to Taiwan. Any rally in the Taiwan TAIEX index is likely to prove temporary. The best is behind for the economy. Add to this the tensions between China and Taiwan and Apple’s recent announcement drastically revising down production of its new XR iPhone model which will hit Taiwanese manufacturing exporters and the future looks less certain.</p>

We maintain our underweight call on Taiwanese equities, even though US-China trade tensions are likely to de-escalate with the Democrats now in control of the House of Representative. We would not be surprised to see an improvement in investor sentiment towards China, spill over to Taiwan. Any rally in the Taiwan TAIEX index is likely to prove temporary. The best is behind for the economy. Add to this the tensions between China and Taiwan and Apple’s recent announcement drastically revising down production of its new XR iPhone model which will hit Taiwanese manufacturing exporters and the future looks less certain.

MSCI AC Asia ex Japan Index (MXASJ INDEX)

Taiwan - Stay Underweight